The global granular urea market comprises urea fertilizers in solid particulate form that helps meet the nitrogen requirement of crops. Granular urea is widely used as nitrogen fertilizer for a variety of crops including cereals, fruits & vegetables, and others due to its characteristics such as high nitrogen content, uniform size, and free-flowing properties. It acts as a vital nutrient for plant growth and is a cost-effective source of nitrogen. The rising demand for food owing to the continuously growing population has augmented the usage of granular urea fertilizers in the agricultural sector.
The Global Granular Urea Market is estimated to be valued at US$ 42.96 Bn in 2024 and is expected to exhibit a CAGR of 4.9 % over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Granular Urea Market are CF Industries Holdings, Inc., Yara International ASA, Saudi Arabian Fertilizer Company, Nutrien Ltd., Ostchem Holding, EuroChem Group, Bunge Limited, CVR Partners LP, Luxi Chemical Group Co.,Ltd., and Coromandel International Ltd. These players are focusing on expanding their global presence by adopting strategies such as partnerships, collaborations, and new product launch.
Market Trends
Granular Urea Market Trends Rising adoption of precision farming: The rising adoption of precision farming techniques is one of the major trends witnessed in the global granular urea market. Precision farming helps optimize the usage of granular urea fertilizers through yield monitoring, variable rate technology, and site-specific crop management. This improves fertilizer use efficiency and farm productivity.
Growing demand for nitrogen-efficient fertilizers: There is a growing demand for nitrogen-efficient fertilizers to reduce nitrogen losses from soils and increase nitrogen uptake efficiencies by crops. Market players are focusing on developing advanced granular urea fertilizers through new formulations and coatings that synchronize nitrogen release with crop demands.
Market Opportunities
Increasing organic farming: The growing popularity of organic farming worldwide presents significant opportunities for manufacturers to develop organic or natural granular urea fertilizers. Many players are investing in R&D to commercialize granular urea products derived from natural sources without compromising on yields.
Rising cultivation of horticultural crops: The increasing cultivation of high-value horticultural crops such as fruits and vegetables globally is expected to boost the sales of granular urea fertilizers. These fertilizers help optimize the nutrition requirements of horticultural crops and boost their yields.
Impact of COVID-19 on Granular Urea Market Growth
The Granular Urea Companies in COVID-19 pandemic has negatively impacted the granular urea market. The lockdowns and restrictions imposed by various governments led to disruptions in the supply chain and logistical challenges. This hampered the production and transportation of granular urea. The closure of agricultural farms and lack of labor availability reduced the demand for granular urea from the agricultural sector in 2020. However, with the easing of restrictions in 2021 and focus on increasing agricultural production, the demand is recovering steadily.
The post-COVID scenario looks positive for market growth. Various factors like rising population, increasing food demand, and government initiatives to boost agricultural outputs would propel granular urea consumption. Technology adoption in farming, usage of drones and sensors for optimized fertilizer application, and deployment of blockchain for supply chain traceability are some futuristic trends that can help gain lost market share. Measures to reduce dependency on imports and increase domestic production capacity through partnerships are crucial strategies for long-term growth.
As per value, North America holds the largest share of the granular urea market currently, driven by the large-scale corn cultivation in countries like the United States. Central and South America are also major markets given their extensive farming landscape and exports.
However, Asia Pacific region is expected to witness the fastest growth during the forecast period with China and India leading the demand. Rising incomes, farm mechanization, and government agriculture promotion schemes are augmenting granular urea adoption in Asia Pacific.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)